3 reasons why Enzyme Finance (MLN) is up 92% in a week
Enzyme price doubles in a week after major exchange listings and big-name DeFi partnerships lead to a 2,000% increase in 24-hour trading volume.
Decentralized finance (DeFi) has emerged as one of the most promising real-world applications of blockchain technology, capable of reshaping the face of the global financial markets and transforming the way the average person manages their money.
One DeFi focused project that has been gaining attention over the past week as the mainstream world slowly opens itself to the possibilities of DeFi is Enzyme Finance (MLN), a protocol focused on on-chain asset management that allows users to “build and scale vaults based on the investment strategies of their choice,” according to the projects website.
Three reasons the price of MLN has surged in July include several new exchange listings that helped increase token liquidity and trader access, a new partnership with Yearn.finance, and a rise in the amount of value locked on the protocol.
Trading volume spikes after new exchange listings
Exchange listings have long been a source of sudden jumps in price and trading volume, especially during sideways trading markets like the cryptocurrency ecosystem is currently experiencing.
This trend held true for Enzyme on July 5 as the announcement that the MLN token would begin trading on Binance, the most active crypto exchange in terms of volume, led to a 55% spike in the price of MLN to a high of $125. The 24-hour trading volume also surged by more than 2,000% to $148 million.
— Binance (@binance) July 5, 2021
Enzyme’s listing on Binance was further bolstered by the token’s addition to the cryptocurrency exchange Gate.io, with both listings coming roughly one month after the project began trading on Coinbase, the largest cryptocurrency exchange in the United States.
DeFi partnership attracts attention
A second source for the spike in momentum seen for Enzyme was the July 5 announcement of a collaboration between Enzyme and Yearn.finance.
We are pleased to announce that as of today Yearn Vaults are available on Enzyme Finance; giving Portfolio Managers within the Enzyme App new opportunities to open up yield farming strategies specifically designed to their needs.
— Enzyme Finance (@enzymefinance) July 5, 2021
Through this partnership, Yearn vaults are now available on the Enzyme protocol, which allows portfolio managers on the Enzyme app to utilize yield farming strategies available on Yearn as part of their overall investment strategy.
Yearn.finance is quickly becoming one of the most expansive and cross-integrated DeFi platforms in the DeFi space and the Enzyme integration is yet another step in this direction.
Value locked in the protocol doubles
The third source of momentum for Enzyme Finance can be found looking at the project’s total value locked (TVL), which more than doubled in June from $40 million to a high of $110 million, according to data from DeFi pulse.
The source of the sudden rise in TVL can be traced back to a collaboration between Enzyme Finance and Unslashed Finance, which invested 4,000 Ether (ETH) into yield strategies on Enzyme in order to “buffer up their capital base for insurance.”
Another new ATH with 225% spike in Enzyme TVL yesterday as @UnslashedF deploys into yield strategies to buffer up their capital base for insurance. Watch out for their pending launch….” pic.twitter.com/8qbFSnyDqT
— Enzyme Finance (@enzymefinance) June 16, 2021
Zooming out meanwhile, the DeFi sector has shown some resiliency during the market-wide downturn of the past few months and has begun showing signs of life as the market heads into July.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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